China Ever­brilliant Bank (CEB), a major commercial bank in China and i of the globe's largest public companies, is debuting a blockchain-based supply chain finance solution by Ant Financial.

Ant Fiscal, the financial arm of Chinese east-commerce giant, Alibaba, has partnered with CEB to collaboratively implement Duo Chain — a network services platform designed to handle supply concatenation-related financial transactions.

Ant Fi­nan­cial started working on the Duo Chain in 2022

CEB and Emmet Financial initially formed their partnership during the 2nd half of 2022. CEB is the first Chinese bank to deploy Ant Financial'south Duo Chain, as reported by local finance-focused publication, Sina Finance, on March 12. According to local reports, Ant Fi­nan­cial originally unveiled the technology in 2022 as a way to heave supply chain finance using blockchain technology.

By definition, supply chain finance (SCF) is an optimization practice that aims to provide efficient financing of the value chain. The goal of both parties — buyer and seller — is to reduce working capital, and ameliorate cash flow at a diminished price by deploying the heir-apparent's credit rating. As such, SCF provides short-term credit which allows buyers to extend their payment terms, and enables suppliers to receive before payments.

To date, a number of companies worldwide take already deployed blockchain-based SCF solutions in an effort to increase the transparency of transactions and optimize costs of credit access. For example, London-based banking company and financial services firm, Standard Chartered, completed its first joint blockchain-based supply chain financing transaction in Baronial 2022. Previously, China Shipbuilding Industry Company partnered with Shanghai Bank to develop a blockchain-based online supply chain finance platform in 2022.

Prc Ever­bright Depository financial institution to improve security of SCF transactions with blockchain

By implementing Pismire Financial'southward Duo Chain engineering science, Cathay Always­bright Bank intends to better the security of SCF, and eliminate fraudulent transactions. As reported by Sina, the Duo Chain plat­course allows users to consummate identity verification and electronic signatures with CEB, while recording all relevant transactions to a distributed ledger for tracking purposes.

CEB reportedly added that the bank too in­te­grated internal and external data management platforms, en­ter­prise credit plat­forms, and other connected sys­tems to raise efficiency and quality of its financial services.

The Duo Chain technology deployment is not the first motion to blockchain made by CEB. In early 2022, China Ever­bright Bank reportedly became a member of a major local blockchain banking project, the Merchandise and Finance Interbank Trading Blockchain Platform. The platform was launched by Mainland china'south self-regulatory banking concern organization, the China Banking Association, in December 2022.